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Dalmia Refractories Unlisted Shares

Dalmia Refractories Limited (Unlisted Shares)

Key Takeaway

Dalmia Refractories Limited (DRL) is a leading Indian refractories manufacturer with a diversified product portfolio, robust manufacturing capabilities across four plants, and strong promoter backing. Positioned to capitalize on steels, cement, glass, and petrochemical sectors, DRL is advancing toward an IPO in FY 2025–26, offering investors pre-listing opportunities in its unlisted shares.

Company Profile

Dalmia Refractories Limited (formerly Shri Nataraj Ceramic And Chemical Industries Ltd.) is an unlisted entity incorporated on 21 June 1973, headquartered at Dalmiapuram, Tamil Nadu. As part of the Dalmia Bharat Group, DRL specializes in alumino-silicate refractories and serves steel, cement, glass, non-ferrous metals, and petrochemical industries.

| Incorporation Date | 21 June 1973 |
| Registered Office | Dalmiapuram, P.O. Kallakudi, Tiruchirapalli Dist., Tamil Nadu – 621651  |
| ISIN Code | INE200F01017  |
| Website | http://www.dalmiarefractories.com |
| Industry | Refractories |
| Promoter Group | Dalmia Bharat Group |

Key Areas of Focus

Focus AreaDetails
High-Temperature LiningsBricks, monolithics, castables for furnaces & kilns in steel, cement, glass, non-ferrous metals, petrochemicals
Backward IntegrationInvestments in magnesite mining, raw material sourcing for quality control
R&D and InnovationDalmia Institute of Scientific & Industrial Research (Rajgangpur); advanced formulations
Strategic DiversificationMag-Carbon (DMC brand), tyre business (Birla Tyres acquisition), critical minerals participation
Pre-IPO Share TransactionsActive in unlisted markets; platforms like UnlistedZone facilitate buy/sell 2

Business Operations and Market Position

AspectDetails
Manufacturing PlantsDalmiapuram (TN), Khambhalia (GJ), Katni (MP), Salem (leave-and-license) and China facility
Production Capacity>120,000 MT shaped bricks & monolithics annually
Market Share>50% in alumina bricks for cement industry
Customer SegmentsCement majors, steelmakers, petrochemical units, glass & non-ferrous metal producers
Geographical ReachPan-India sales & service; exports to Europe, Asia, Americas
Competitive EdgeEnd-to-end refractory solutions; in-house R&D; backward integration

Core Product Portfolio

Product CategoryOfferings
Refractory BricksHigh-alumina, fire-clay, special quality bricks, alumino-silicate bricks
Monolithic RefractoriesCastables, mortars, ramming masses, low-cement castables, special castables
Magnesia-Carbon (DMC)Branded for steel ladle linings; high thermal shock resistance
Ancillaries & ServicesInstallation, lining services, technical consultancy
Specialty ProductsSnorkels, lances for steel industry (via GSB acquisition)

Manufacturing Capabilities and Expansion Plans

Facility LocationCapacity/RoleExpansion Plans
Dalmiapuram, TNShaped bricks & monolithics; R&D supportUpscaling digital transformation
Khambhalia, GJHigh-alumina bricksAdd capacity for critical minerals processing
Katni, MPMonolithics production exclusivelyNew product lines for pet-coke kilns
Salem (lease), TNMag-Carbon divisionScaling DMC capacity
China PlantMag-Carbon manufacturingStrategic divestment evaluation
DISIR, Odisha (R&D)Pilot trials, raw material testing, collaborative projectsIndustry-academia joint research
Upcoming Tyre UnitBirla Tyres Limited facility at Balasore, OdishaCommissioning FY 2025

Promoters and Management

Promoter / DirectorRole
Anupama DalmiaSignificant Beneficial Owner
Yadu Hari DalmiaSignificant Beneficial Owner
Bela DalmiaSignificant Beneficial Owner
Puneet Yadu DalmiaSignificant Beneficial Owner
Shrutipriya DalmiaSignificant Beneficial Owner
Avantika DalmiaSignificant Beneficial Owner
Executive TeamCEO & CFO appointed; cross-functional heads for operations, sales & finance

Shareholding Pattern

Category2024 (%)
Promoter & Promoter Group55.84
Public (Bodies Corporate)0.91
Public (Individuals)34.01
Public (NRIs/OCBs)0.10
Institutions0.04
Others9.10*
Total100.00

*Includes unclassified & depository receipts

Company Fundamentals

Fundamental Metric2024 (₹ Cr)
Revenue116
EBITDA–28
EBIT–52
PBT56
PAT47
Gross Margin45.69%
Operating Profit Margin–24.14%
Net Profit Margin40.52%
EPS (Diluted)10.63

Financials

Income Statement (₹ Cr)

Item2021202220232024
Revenue790300346116
Cost of Material Consumed44618522663
Gross Profit Margin43.54%38.33%34.68%45.69%
Employee Benefit Expenses94305019
Other Expenses190405255
EBITDA564625–28

Balance Sheet (₹ Cr)

Item2024
Total Assets
Total Liabilities
Equity Share Capital
(Detailed BS not publicly disclosed)

Cash Flow (₹ Cr)

Item2024
Cash from Operations
Cash from Investing
Cash from Financing
(Detailed CF not publicly disclosed)

Annual Reports and Regulatory Compliance

AspectStatus
Annual Report FY 2023–24Published; available on investor site
Quarterly ResultsFiled with MSEI & BSE quarterly; comply with XBRL requirements
Shareholding Pattern FilingsQ2 FY 24–25 filed; comply with SEBI LODR requirements
Statutory AuditsCompleted by statutory auditor; no adverse remarks
SEBI CompliancesAdheres to insider trading, continuous disclosure, share classification rules

IPO Preparations and Market Listing Plans

MilestoneTimeline / Details
Pre-IPO RoadshowsQ4 FY 24–25
SEBI Draft Red Herring ProspectusFiling planned end FY 25
Target Listing ExchangeBSE SME / Mainboard
Expected Listing DateH2 FY 25–26
Pre-Listing Valuation MetricsP/E 12–15x range; EV/EBITDA 8–10x (indicative)
Anchor Investors EngagementOngoing discussions
Minimum Lot Size (Unlisted)100 shares

 

FAQs – How to Buy or Sell Dalmia Refractories Unlisted Shares

How can I buy Dalmia Refractories Unlisted Shares?
You may purchase through registered unlisted share platforms unlistedsharesbroker or Armsecurities, via off-market transfers in your demat account, following KYC and DIS procedures.

What is the minimum lot size for Dalmia Refractories Unlisted Shares?
Typically, the minimum lot is 100 shares in off-market trades.

What documents are required for Dalmia Refractories Unlisted Shares transactions?
PAN, Aadhaar, demat account details, DIS form (offline/online), bank proof, and broker agreement are mandatory.

What is the current lock-in period for Dalmia Refractories Unlisted Shares?
SEBI regulations mandate a six-month lock-in for pre-IPO shares, applicable based on allotment category.

How are Dalmia Refractories Unlisted Shares transferred between accounts?
Via Delivery Instruction Slip (DIS):

  • Offline DIS: Paper form submitted to your DP.
  • Online DIS: Broker’s online portal transaction.

What are the current valuation metrics for Dalmia Refractories?
Indicative pre-listing valuations suggest a P/E of 12–15x and EV/EBITDA of 8–10x based on FY 24 PAT and EBITDA forecasts.

What makes Dalmia Refractories shares attractive for investment?
Strong market leadership in refractories, backward integration, diversified product mix, R&D focus, and imminent IPO listing potential.

What are the tax implications of Dalmia Refractories Unlisted Shares transactions?
Capital gains tax applies:

  • Short-term (holding ≤ 24 months) taxed at 15%.
  • Long-term (holding > 24 months) taxed at 20% with indexation benefits.

Can I pledge Dalmia Refractories Unlisted Shares for loans?
Yes, if your DP facilitates pledge of off-market holdings; lender acceptance subject to risk assessment.

What is the outlook for Dalmia Refractories’s IPO and exit opportunities?
With strong financial turnaround, sector tailwinds, and SEBI approvals, an IPO in FY 25–26 offers exit liquidity for pre-IPO investors.

P/E23.73P/S4.35P/B0.43
Industry PE26.6Face Value10Book Value589.58
Market Cap1118.26 CrDividend1.5Dividend Yield0.59 %

Corporate Action of Dalmia Bharat Refractories Unlisted Shares

Financial YearParticularsRecord DateRatio/Rates/AmountRemarks
2024-25DIVIDEND24-Aug-20251Dalmia Bharat Refractories Ltd recommended final dividend of INR 1/- (i.e. 10%) per equity share of Rs. 10/- each (RECORD DATE IS TENTATIVE)
2023-24DIVIDEND05-Aug-20241.5Dalmia Bharat Refractories Ltd has declared dividend of Rs 1.50 per share (RECORD DATE IS TENTATIVE)
2022-23DIVIDEND27-Jul-20231.5Dalmia Bharat Refractories Ltd has given dividend of Rs 1.50 per share
2021-22DIVIDEND25-Sep-20220.5Dalmia Bharat Refractories Ltd has given dividend of Rs 0.50 per share
2021-22MERGER11-Mar-2022768:100Merger Announced, 768 shares of Dalmia Bharat refractories for 100 shares of dalmia refractories

 

Insights of Dalmia Bharat Refractories Unlisted Shares

Financial Insights:

Particulars 

31st March, 2024

31st March, 202331st March, 2022
Revenue 116345300*
EBITDA-272547
PBT-2.43-1035
Exceptional Items12.091,760
PAT 471,30723

 

*The revenue for FY22 is calculated only for the continuing operations, i.e. only from the business that has been retained post the sale to RHI Magnesita.

The table below shows the calculation of the total worth of the business, taking into account its liquid assets, long-term investments, and the remaining existing business. The worth of the business is calculated on the basis of 1.5x of the previous year’s revenue, amounting to ₹171 crore. The use of a relatively low multiple reflects ongoing operational challenges and reduced market competitiveness, despite signs of stabilization. With cash equivalents and marketable securities forming a significant portion of the company’s total assets, it continues to demonstrate a strong liquidity position.

Additionally, holding shares in RHI Magnesita and Dalmia Bharat, now valued at ₹1,493 crore and ₹309 crore respectively, underscores the company’s strategic focus on high-potential sectors. The book value per share of ₹594 indicates an undervalued position relative to the current market price (CMP) of ₹267. The steep discount of 55% suggests that the market has not fully accounted for the company’s asset value and potential for recovery.

 

ParticularsFY24 (in cr.)
Cash & Cash equivalent balance251
Marketable securities
    2.7Cr shares of RHI Magnesita1493
    6.9Lac shares of Dalmia Bharat309
    Mutual Fund2182020
Worth of existing Business171
Total2442
Book Value per share594
CMP267
Discount55%

DBRL currently lacks strategic influence in the decision-making process of RHI Magnesita, despite their significant stake in the company. This situation suggests the potential for DBRL to divest its stake in RHI, which could bolster the company’s cash reserves. This will positively impact DBRL’s financial position in the near term.

Sale of Indian Refractory Business

Prior to the sale, the Indian business of DBRL reported revenue of INR 1,100 crore and expenses of INR 1,151 crore, indicating operational losses. However, despite this loss, the company proceeded with the sale of the business, valuing it based on 27 times of DBRL EBIDTA.

Financial performance of the Indian business of DBRLFY23 (in cr.)
Revenue1100
Expense1151
Profit before exceptional item-51
Exceptional item26
Profit after exceptional item-25

 

The fair value of shares received as part of the sale of the Indian business to RHI Magnesita amounted to INR 1,707 crore, with an additional INR 484 crore received in cash. The net value of assets and liabilities transferred as part of the business amounted to approximately INR 400 crore. Consequently, the ultimate gain realized from the sale of the business amounted to INR 1,759 crore.

In Cr.
ParticularsAs on Jan 4th, 2023
Fair value of shares received for Dalmia OCL Limited1707
Cash Consideration393
Cash Consideration for working capital91
Total consideration2191
Less: Carrying amount of net assets transferred (refer below)-400
           Total Assets1038
           Total Liabilities638
Less: expenses towards business transfer32
Total Gain on disposal of refractory business1759

Share price journey:

On March 1st, 2022, born from the merger of Dalmia Cement (Bharat) Ltd. – Refractory Division, Dalmia Refractories Ltd & GSBIndia. The shareholders of Dalmia Retractory in the unlisted market got shares of Dalmia Bharat Refractory.Those holding 100 shares of Dalmia Refractory got 768 shares of Dalmia Bharat Refractory. This transaction resulted in falling of share price from ₹829 per share to ₹124 per share.

Balance Sheet of Dalmia Bharat Refractories Unlisted Shares

Standalone

in ₹ Cr.

categoryFY24FY23FY22FY21FY20FY19FY18FY17
Equity2499.902199.32891.30256.26172.65190.11214.21185.90
Liabilities571.33689.00454.90134.57115.54111.3086.0281.23
Total Equity and Liabilities3071.232888.321346.20390.83288.18301.41300.23267.13
Net Fixed Assets241.3857.14333.82100.10103.39105.30111.85121.36
Capital Work-in-progress7.170.0221.811.090.970.380.370.00
Other Non current Assets2319.401949.73316.30152.1771.84102.59106.4369.94
Current Assets503.28881.43674.27137.47111.9993.1381.5875.83
Total Assets3071.232888.321346.20390.83288.18301.41300.23267.13

Profit and Loss of Dalmia Bharat Refractories Unlisted Shares

Standalone

in ₹ Cr.

categoryFY24FY23FY22FY21FY20FY19FY18FY17
Net Revenue40.8093.5389.64218.76290.58197.86180.28178.01
Total Operating Cost70.59102.5774.01205.20262.80185.72180.75167.77
Operating Profit (EBITDA)-29.79-9.0415.6313.5627.7812.14-0.4710.25
Other Income48.089.161.305.455.015.464.811.18
Depreciation and Amortization Expense21.6727.330.406.838.177.899.0410.11
Profit Before Interest and Taxes-3.38-27.2116.5312.1824.639.70-4.691.32
Finance Costs11.118.950.073.032.651.640.911.60
Profit Before Tax and Exceptional Items Before Tax-14.49-36.1616.469.1621.988.07-5.61-0.28
Exceptional Items Before Tax29.241763.350.000.000.000.000.000.00
Profit Before Tax14.751727.1916.469.1621.988.07-5.61-0.28
Income Tax9.67408.463.592.024.451.03-2.43-0.06
Profit for the Period from Continuing Operations5.081318.7312.877.1417.537.04-3.17-0.22
Profit from Discontinuing Operations After Tax46.34-31.92-1.500.000.000.000.000.00
Profit for the Period51.421286.8111.377.1417.537.04-3.17-0.22

 

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